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If a contract of sale provides that a structure is being sold "as is," you'd think a seller would be insulated from suit should problems with the property later arise. Right?

Well, if you said yes, you couldn't be more wrong. (At least as far as the Appellate Term, Second Department is concerned.)

In Marcri v. Vandermark , Macri sued to recover damages he incurred to repair a water leak that was uncovered after the closing.

Although the building was sold "as is," Vandermark had represented in the contract of sale that the water system was in "working order" at the time of closing. In actuality, the seller knew of the leak but didn't bother to disclose its existence to the purchaser.

The City Court of Newburgh, Orange County, relied upon that "as is" language and dismissed the buyer's case. On appeal, the AT2 reversed and awarded Macri $2500.

While finding that the "as is" language precluded a claim for contract breach, nothing prevented the buyer from asserting "fraud" and securing a recovery of the repair costs.

Is that the way "as is," is? 

For a copy of the Appellate Term's decision, please use this link: Marcri v. Vandermark